Plantier Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. The budgeted fixed manufacturing overhead for the year was $136,950 and the budgeted hours were 27,500 machine-hours. Data concerning the actual results for the most recent year appear below:
Required:
a. Determine the fixed overhead budget variance for the year.
b. Determine the fixed overhead volume variance for the year.

Question

Plantier Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. The budgeted fixed manufacturing overhead for the year was $136,950 and the budgeted hours were 27,500 machine-hours. Data concerning the actual results for the most recent year appear below:
  Required:
a. Determine the fixed overhead budget variance for the year.
b. Determine the fixed overhead volume variance for the year.

Quizplus · Accepted Answer

The Answer of Plantier Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. The budgeted fixed manufacturing overhead for the year was $136,950 and the budgeted hours were 27,500 machine-hours. Data concerning the actual results for the most recent year appear below:
  Required:
a. Determine the fixed overhead budget variance for the year.
b. Determine the fixed overhead volume variance for the year.

Plantier Incorporated Makes a Single Product--A Cooling Coil Used in Commercial